What is an absolute quota?

An absolute quota refers specifically to a restriction that allows only a fixed quantity of a particular item to be imported or exported during a given timeframe. This type of quota is quantitative, meaning it establishes a clear limit on the number of units that can cross a border. For example, if a country has an absolute quota on the import of a specific product, it can only import that product up to the predetermined limit, regardless of demand or market conditions.

This system is often used to protect domestic industries from foreign competition by controlling the volume of specific goods entering the market. The logic behind this measure is to prevent over-saturation and ensure that local producers are not adversely affected by excessive imports.

In contrast, the other options mentioned do not accurately convey the concept of an absolute quota. For instance, the notion of allowing unlimited imports contradicts the very essence of a quota. Qualitative measures or any limitation applying only to agricultural products do not encapsulate the broader scope of what an absolute quota entails. Thus, the emphasis on the specific quantity of items establishes why this choice aligns perfectly with the definition and functioning of absolute quotas in international trade.